Know everything about the vat deregistration process to cancel your vat number

If you are a vat registered trader in the UK that desires to surrender your vat certificate for a number of reasons then you need to learn everything about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you will still have to take into account vat and file your final vat return.

There are many reasons that could compel one to leave the vat system. It is possible to make an application for deregistration of vat in case your business has collapsed and you have filed for insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 in the next 1 year, you sell your organization, there is a change in the legal status of your business, you can either join another vat group or disband your present vat group, or else you intend to join the agricultural flat rate vat scheme. There are various other reasons that are specified by HM Revenue and Customs or hmrc vat department that could allow you to be a legitimate candidate for vat deregistration.

You can also voluntarily leave the vat tax system if your taxable supplies are generally or perhaps wholly zero rated. You can even do so in case your input tax usually exceeds your output tax vatverification.com. However, out of all above circumstances you will have to provide required proof in addition to convince hmrc vat as to the genuineness of the reason as to why you want to cancel your vat registration. Once you are deregistered from vat then you’ll not be permitted to issue vat invoices or file vat returns.

For you to definitely deregister yourself from VAT you will need to contact your vat agent that should direct you about the exact process that must be followed in order that you do not end up making errors. You will have to fill the VAT 7 vat form once you have read and understood vat notice 700/11 on ?Canceling your registration? together with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and will require you to tick the appropriate reason as to the reasons you’ve applied for deregistration in addition to offering the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets that you currently hold. You will also need to specify in the event you stick to the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will often reply in a period of 3 weeks. In the event you do not get a reply then you should remind them. If hmrc is satisfied with your application then you will receive a formal notice of vat cancellation on VAT35 form and also receive a formal notice of exemption from registration on VAT8 form. Your vat agent will be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain situations compel you to make an application for cancellation of the vat certificate then you’ll have to follow proper procedure as laid down by hmrc vat department find here. If all your papers have been in order and when there are no mistakes in your deregistration form you then should be out of the vat system within a month of filing for vat deregistration.